Tds on allowances

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Can any one advise me is TDS deductible on allowances like, Food allowances, travelling allowances, compaign allowances if amounts to huge amounts i.e. around rs. 50000/- per month and above. Please advise.

Thanks

Satya

Replies (6)

these allowances are included in the salary structure.  After the employee submits his investment declaration for the year,  salary income is being calculated after considering all the exemptions & deductions.  And if the salary exceeds the exemption limit then TDS would be requried to be made.  So only paying of huge allowances does not attract TDS provisons.  The salary should exceed the exemption limit to be chargeable to tax.

Agreed with Giridhar

Only Taxable part of Allowances to be added in salary, and Tds is to be deducted on salary as per sec. 192
i.e on projected salary basis.

(High amount of Allowances amount to addition in salary)

Thanks Mr. Giridhar & Mr. Dheeraj. If I pay to Marketting personnels who are not in company payroll and they are getting commision on target sales, what would be your answer.

Deduct TDS on the commission payable during the year & issue Form 16A.  It would constitute their business income.

Agree with the above...

sir,

i am proprietor of a firm i would like to know 

1) a take a trip to delhi i pay for hotel taxi ect 24960 

now i have the bills for about 12960 ticket bill only how do i claim the other bill . is it possible to do so by way of allowance 750x 2person x 8 days

 

 

 

 

 

 

 

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